8th Pay Commission: How much will the pension of central employees increase under UPS? Know everything

8th Pay Commission Pay Matrix: This decision of the Modi government will benefit more than 1.2 crore central government employees and pensioners. Employees and pensioners are eagerly waiting for the increase in their salary and pension.

8th Pay Commission Pension Calculator: If the fitment factor of 2.86 is applied, then an increase of about 186% can be seen in the pension and salary.

Central employees were demanding the implementation of the 8th Pay Commission for a long time, which has finally been approved by the Central Government. The Eighth Pay Commission will be implemented from the year 2026, let us understand how much the salary and pension of central employees (Central Govt Employees Salary Hike) can increase after its implementation.

More than 1.2 crore central employees and pensioners benefited

This decision of the Modi government will benefit more than 1.2 crore central government employees and pensioners. After this decision, these employees and pensioners are now eagerly waiting for an increase in their salary and pension.

This announcement of the government has made lakhs of families happy whose members are either working in the Central Government service or have retired after service.

Announcing this on 16 January 2025, Union Minister Ashwini Vaishnaw said that the government has decided to implement the 8th Pay Commission and its recommendations will be implemented from January 1, 2026. Till then, employees will continue to get pension and salary under the 7th Pay Commission.

What is UPS and when will it be implemented? 

Unified Pension Scheme (UPS) has been created by combining the special features of both Old Pension Scheme (OPS) and New Pension Scheme (NPS). Under UPS, central employees will get a fixed pension. It is going to be implemented on April 1, 2025.

Benefits of Unified Pension Scheme

• The scheme will include provisions like family pension, a guaranteed pension amount and minimum pension for all central government employees.
• Under the UPS pension scheme, 50% of the average basic salary of 12 months will be given to the employee for life after retirement. Provided that the employee has served the central government for at least 25 years.
• If an employee has served for only 10 years, then his minimum pension will be Rs 10,000 per month.
• After the death of the employee, 60 percent of the employee's pension will be given to one of the eligible members of his family. 

What will be the minimum pension under UPS after 8th Pay Commission?

Let us now take a look at how much the minimum pension of central government employees under UPS will change after the implementation of the 8th Pay Commission.

Experts believe that the fitment factor in the 8th Pay Commission can be from 1.92 to 2.86, due to which the pension can increase from the current Rs 9,000 to Rs 17,280 to Rs 25,740. The Fitment Factor is a special multiplier used to calculate the salary and pension of government employees. If the fitment factor of 2.86 is implemented, then an increase of about 186% can be seen in pension and salary.

What will be the minimum salary for the employees serving under UPS?

If the fitment factor of 2.86 is applied, the minimum basic salary of a government employee, which is currently Rs 18,000, will increase to Rs 51,480. Similarly, if the fitment factor of 2.86 is applied, the minimum pension will increase to Rs 25,740 from the current Rs 9,000.

Keep in mind that this pension amount has been calculated by considering the fitment factor as 2.86. If the fitment factor changes, both the minimum wage and pension will change.